This Bay Area city launched its own ride share app — with 4 new Teslas

PALO ALTO — No need to call Uber or Lyft next time you want to take a weekday trip to Stanford Shopping Center, California Avenue restaurants or anywhere else in Palo Alto — the city now has a fleet of Teslas waiting to swoop in at a moment’s notice. Yes, Teslas.

Palo Alto Link is this tech city’s foray into the ride-share space, seeking to disrupt titans that have struggled in recent years to keep a base of happy riders and drivers, and offering anyone a brand new Tesla — or, if a minivan is needed, a Toyota Sienna — to pick up and drop off anywhere in the city, whether it’s the hospital, a trip to the mall, a jaunt in the park or for the simple curiosity of riding in a Tesla.

The ride-share app is easy to use, works much like Uber or Lyft and is the city’s answer to residents’ clamor for the return of a popular shuttle service that was shut down at the height of the pandemic in 2020. Rides are free until April 7, but fares won’t break the bank: just $3.50 can get you anywhere in the city, with discounts for students, seniors, those with disabilities and others that bring the cost down to just $1. Right now the service operates Monday through Friday from 8 a.m. to 6 p.m.

City Transportation Manager Nate Baird said Palo Alto Link will be much more useful than a fixed-route shuttle.

“It really potentially expands access to transit for a number of residents because transit really serves those who are within a quarter mile of bus stops,” Baird said. “Having a service that can go to any cross street in the city is an improvement for a great many folks in our city.”

Powered by the global public transportation and transit tech company Via Transportations Inc., Palo Alto Link isn’t the first in the city to bring ride-share tech to the public sector. The tech company has partnered with cities across the United States, including Jersey City, New Jersey; Sarasota County, Florida; and Arlington, Virginia. Cupertino has also partnered with Via to bring the Cupertino Shuttle, which recently announced it will expand its service to include Santa Clara and office parks in North San Jose to begin in April.

Palo Alto Link and others like it aren’t exactly like the private sector competitors, Baird said. The service is an 18-month pilot program approved by the City Council to replace its shuttle, using Measure B funds allocated for innovative transit ideas. So it’s not permanent. And Baird said users should expect to ride with other people. Riders book rides over the phone too, and pay in cash.

“There’s a number of things local government can provide so we can provide access to as many people as possible whereas the private sector doesn’t need to serve everyone super well, they just need to make a profit,” Baird said.

Currently, Palo Alto Link has a fleet of 10 vehicles, four Teslas, three wheel-chair accessible Toyota Siennas and three Siennas with inside bike racks. When you book a ride on the app, the service operates similarly to a carpool ride-share, where Via’s algorithm groups riders together as needed. There haven’t been any issues so far since the program started Tuesday, and there has already been good feedback from riders, Baird said.

At a recent council meeting, Palo Alto city manager Ed Shikada said Palo Alto Link is part of the city’s recovery and “moving toward a new age in public transport in Palo Alto.”

“It’ll be interesting to see how people react to this new resource,” Shikada said. “I look forward to the information this will provide for needs and priorities for travel throughout the city over the upcoming 18 months.”

It’s clear to Baird that Palo Alto Link is the new way for cities to address the needs of riders who find it difficult to commute to work or go to the store with traditional public transit. While the public sector hasn’t previously offered services like this, he said, it’s a step in the right direction as people have become accustomed to the idea of booking rides online or on their phones and sharing a ride.

The drawbacks? The trips are limited to within Palo Alto and the ride share only has 10 vehicles in its fleet. Baird said the city is prepared to adjust accordingly as it obtains more ride data, but he didn’t say whether that meant adding new vehicles.

Uber’s transit agency partnership manager for California, Chris Margaronis, didn’t address Via or Palo Alto Link in a statement to this news organization, but he noted the ride-share company’s own contributions in the public sector.

“Uber supports transit agencies across California and the country by providing access to its driver network when public transit agencies need it most,” Margaronis said. “We work to bridge first/last mile gaps, support agencies when their buses or trains experience service disruptions, and assist agencies with their paratransit services to increase mobility options of aging populations and persons with disabilities. We applaud those cities that are looking to expand transportation options and should they have challenges — Uber is here to help.”

Baird sees Palo Alto Link as the future.

“On the demand, ride-share transit can really help some cities that have started experimenting,” Baird said. “It’s a natural evolution of the technology. Tech is often piloted by the private sector, and it doesn’t behoove government very often to just try things out because there’s a lot more risk involved. Now that we’ve had Uber and Lyft around for a while and use these apps all the time, it can be a very convenient way to serve a lot of the users we want to reach.”